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Changes to the FOSFA Arbitration Rules from 1 April 2018
By Andrew Rourke (Partner, Guildford) and Rebecca Armstrong (Legal Director, Guildford)
Following on from their review of the standard form Oilseed and Soyabean contracts at the end of last year, the Federation of Oils, Seeds and Fats Association (“FOSFA”) has published revised Arbitration Rules (the “2018 Rules”). The 2018 Rules will apply to disputes arising out of contracts incorporating FOSFA arbitration entered into from 1 April 2018 onwards. The current Arbitration Rules published in 2012 (the “2012 Rules”), will continue to apply to contracts entered into prior to 1 April 2018. Some of the key changes to be aware of are as follows:
Time Limits In the 2018 Rules, the time limits within which a party must commence arbitration have been updated as follows: Quality and/or condition For disputes arising out of the quality and/or condition of goods, the time limit within which to commence arbitration in the 2018 Rules has been extended to not later than 90 consecutive days from: – completion of discharge of the goods in CIF, CIFFO, C&F and similar contracts. – completion of delivery in FOB, Ex-tank, Ex-mill and Ex- store contracts. These time limits are significantly longer than those contained in the 2012 Rules and there is no longer any distinction in the 2018 Rules between those claims supported or not supported by certificates of contractual analysis. In the 2012 Rules, the time limit within which to commence arbitration was just 21 consecutive days from completion of delivery (in CIF or similar contracts) or discharge (in FOB or similar contracts) of the goods where the claim was not to be supported by certificates of contractual analysis and 14 consecutive days from the date of the final analysis certificate where the claim was to be supported by certificates of contractual analysis. Monies due claims and claims other than quality and/or condition Under the 2012 Rules, arbitration in respect of monies due had to be commenced not later than 60 consecutive days
after the dispute had arisen. Under the 2018 Rules, however FOSFA no longer treats monies due claims as a separate category of dispute, and the same time limits apply to monies due claims as to all other non-quality and/or condition claims (which are unchanged from the 2012 Rules).
“Under the 2012 Rules, arbitration in respect of monies due had to be commenced not later than 60 consecutive days after the dispute had arisen. Under the 2018 Rules, however FOSFA no longer treats monies due claims as a separate category of dispute...” Under the 2018 Rules, for all disputes other than quality and/or condition of goods, the time limit within which to commence arbitration is not later than 120 consecutive days from: – the expiry of the contract period of shipment or of the date of completion of final discharge of the goods (whichever later) in CIF, CIFFO, C&F and similar contracts. – the expiry of the contract period of delivery or delivery of the goods (whichever later) in FOB, Ex-tank, Ex-mill, and Ex-store contracts. – the last day of the contractual delivery period on any other contract terms.
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